The Great Depression Flashcards
What was the Great Depression?
A severe worldwide economic downturn that lasted from 1929 to 1941.
What were some causes of the Great Depression?
- Stock Market Crash
- Bank Closures
- Overproduction
- High tariffs and war debts from WWI
- Heavy concentration of wealth in fewer hands
- Over speculation
What is buying on margin?
Borrowing money to invest in the stock market, leading to increased speculation.
What happened to farmers during the Great Depression?
Many farmers were unable to pay loans and had to sell at a loss.
What was the impact of bank failures during the Great Depression?
Bank failures contributed to the instability of the banking system and the economy.
What was Black Tuesday?
The day the stock market crashed, leading to significant financial losses.
What role did credit play in the Great Depression?
Excessive credit led to risky investments and contributed to the market crash.
What happened to stock prices during the Great Depression?
Prices began to drop significantly as investors started to sell their stocks.
What was the standard of living in the 1920s?
The standard of living was high, but it could not be sus
What was the consequence of overproduction?
Overproduction led to a surplus of goods and falling prices.
When was Black Thursday and what happened?
Black Thursday was October 24 not 1929 and stock prices began to significantly drop
When was the black Tuesday and what happened?
Black Tuesday was October 29, 1929 and prices hit an all-time low
